If consumers foresee future taxes completely, a reduction in taxes this year that is accompanied by an offsetting increase in future taxes would cause
A. a rightward shift in the saving curve and a rightward shift in the investment curve.
B. no shift in the saving curve, but a rightward shift in the investment curve.
C. a shift in neither the saving nor the investment curve.
D. a leftward shift in the saving curve, but no shift in the investment curve.
Answer: C
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An increase in the level of U.S. exports ________ the demand for goods and service produced in the United States
A) increases B) does not affect C) decreases D) increases or decreases
In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks
A) inflation B) prime C) six-month Treasury bill D) federal funds
For a perfectly competitive sugar producer in Haiti, a short-run economic profit will occur if the price of each ton of sugar sold is
A) greater than the average total cost of producing sugar. B) equal to the average total cost of producing sugar. C) less than the average total cost of producing sugar. D) rising as more sugar is sold. E) greater than the marginal revenue of each ton of sugar.
Define what is meant by the period known as the short run
What will be an ideal response?